Sustain macroeconomic discipline despite recent gains – PwC
THE PwC 2026 West Africa Economic Outlook has called for sustained policy discipline, prudent debt management and robust contingency planning to protect recent macroeconomic gains and strengthen medium-term economic resilience.
According to the report, inflation, foreign exchange pressures and fiscal balances improved markedly in 2025, paving the way for a return to relative macroeconomic stability across the region.
However, PwC warned that these gains remain vulnerable to external shocks, stressing that disciplined policy implementation and forward-looking planning will be critical to sustaining stability in 2026 and beyond.
For Ghana, the report projects that Gross Domestic Product (GDP) growth will remain stable in 2026, supported by targeted sectoral spending amid ongoing fiscal consolidation.
Inflation is also expected to remain stable, underpinned by tight policy coordination, easing imported inflation and improved foreign exchange resilience. Interest rates are projected to ease further as disinflation trends and policy alignment create room for more accommodative conditions.
Commenting on the findings, the Regional Senior Partner for PwC West Market Area, Sam Abu, said the Outlook comes at a time when macroeconomic conditions across West Africa are stabilising following a period of significant reform.
He noted that inflationary pressures across the region are projected to ease from 15.7 per cent in 2025 to 11.1 per cent in 2026, while currency conditions in major economic hubs are settling into a new equilibrium.
Regional outlook
Economic growth across West Africa is expected to remain resilient at 4.2 per cent in 2026, driven by sustained domestic demand and increased energy investments, particularly rising oil and gas output in Senegal and Niger.
Within this regional outlook, Nigeria’s GDP growth is projected at 4.3 per cent, supported by a strong services sector—especially ICT, finance and real estate—as well as improved policy transparency. Ghana’s recovery is expected to continue, with growth driven by agriculture and services. PwC also anticipates significant monetary easing, with policy rates forecast to fall to 15 per cent or lower as inflation approaches target levels.
Mr Abu noted that improving stability is reshaping executive priorities, shifting focus from managing volatility to optimising capital allocation and accelerating digital transformation.
He cautioned, however, that real incomes remain under pressure despite nominal growth, warning that poverty levels in Nigeria could reach 62 per cent of the population in 2026.
The report identifies digitalisation and artificial intelligence as defining forces for 2026, offering opportunities for productivity gains and economic diversification, provided infrastructure gaps and regulatory challenges are addressed.
The Outlook examines four key dimensions shaping the 2026 business environment, beginning with an overview of the West African macroeconomic context.
It further highlights seven critical issues for executives, presents a forward-looking regional outlook as conditions normalise, and outlines eight strategic imperatives to help business leaders build resilience and drive growth in a stabilising but still constrained environment.